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Markets without broad transparent participation and non-existent regulation will be prone to fraud and manipulation. The last couple of years have shown us that even markets with broad participation and (under enforced) regulation can be manipulated. I am waiting for the first few blowups and scandals to happen to restore some balance in this trend of keeping things private for longer.

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Exactly! This feels like a "scam" to skirt the rules of the SEC.

> “The IPO market is dying,” he said. “You see companies achieving robust valuations on the private market but being treated poorly when they go public.” (We’re looking at you, Groupon and Zynga.)

Zynga and Groupon were "treated poorly" because their numbers showed that they were NO WHERE NEAR as profitable as they wanted us to believe when they were private (and secrete). I suspect Facebook, also has highly inflated valuation in these "second markets" where information is scarce.

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